{"id":1088,"date":"2015-12-05T13:19:06","date_gmt":"2015-12-05T18:19:06","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/wegmans-the-best-of-four-worlds\/"},"modified":"2015-12-05T13:19:06","modified_gmt":"2015-12-05T18:19:06","slug":"wegmans-the-best-of-four-worlds","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/wegmans-the-best-of-four-worlds\/","title":{"rendered":"Wegmans: The Best of Four Worlds"},"content":{"rendered":"

Wegmans Food Markets is the 46th<\/sup> largest U.S. private company, with $7.4 billion of annual sales.[1]<\/a>\u00a0 It is a regional supermarket with only 86 stores.\u00a0 Despite this small footprint, Wegmans has a loyal customer following and a value proposition that helps it disrupt every new market it enters.<\/p>\n

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BUSINESS MODEL<\/u><\/strong><\/p>\n

Wegmans creates value by pulling the best attributes of its competitors together, giving it the power of 36\"\"0-degree competition.[2]<\/a>\u00a0 It is the best of both worlds or \u2013 more accurately \u2013 the best of four<\/em> worlds.\u00a0 First, Wegmans stores carry a wide selection<\/u> of 50,000-70,000 products compared to a competitor average of 40,000.[3]<\/a>\u00a0 This is possible because its stores are very large, measuring up to 140,000 sqft.[4]<\/a>\u00a0 Second, Wegmans creates a shopping atmosphere<\/u> that mimics European open-air markets where customers can see and smell foods being cooked\/baked.\u00a0 Third, Wegmans is focused on providing a customer-focused experience<\/u>, driven by friendly, empowered workforce.\u00a0 Fourth, Wegmans captures value by offering consistent low prices<\/u> on popular items and bulk purchase options through its Family Packs.\u00a0 An independent study found that average prices are 13% cheaper at Wegmans than Giant or Safeway.[5]<\/a>\u00a0 To deliver on all four aspects of this business model simultaneously, Wegmans needs a uniquely effective operating model.<\/p>\n

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